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The Secretary of Homeland Security, Janet Napolitano, took the rare step of waiving 92-year-old rules dictating the delivery of petroleum products to north-east ports by US-flagged ships only, expediting shipments from the Gulf of Mexico.

In New York, the Governor, Andrew Cuomo, waived tax and registration requirements on fuel distribution and insisted that there was ''no reason to panic''.

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It was evident that millions did not agree. Lines for fuel stretched for miles and for hours. Some drivers ran out of fuel before they could reach the pumps. In Queens, a 35-year-old man was arrested after he lost patience, cut in line and pulled a .25-calibre pistol on motorists who complained. Airlines began taking the costly step of carrying extra fuel on planes.

Authorities said fuel availability might not return to normal for several more days.

But five days after Sandy delivered a staggering blow to the most populous region in the US and became one of the nation's costliest natural disasters, there were signs of recovery.

Most symbolically, the lights started coming on in pockets of Lower Manhattan, home to vital financial institutions and dense, lively neighbourhoods. Crowds of residents erupted in cheers as power began coming back to about 100,000 customers in the East Village and Chelsea neighbourhoods. Fixes were expected to continue throughout the southern tip of Manhattan this weekend.

The Holland Tunnel, a critical conduit under the Hudson River connecting Manhattan with the west, opened to buses Friday. And the Governor of New Jersey, Chris Christie, reopened the 12 casinos in Atlantic City, the beachfront landmark that was just a few kilometres from where the centre of the storm struck land.

Still, nearly 4 million homes and business remained without power. Some far-flung areas, even some of New York's immediate suburbs, could face another week of darkness and cold.

In Lower Manhattan, some residents spent their fifth day walking up 10 flights of stairs or more to their apartments. Many toilets did not flush. Baths were rare.

Though National Guard troops and others had dispensed hundreds of thousands of meals, some Manhattan residents were spotted Friday digging through a dumpster for food. The city's subways remained hobbled. No subway routes were available between Brooklyn and Manhattan.

Crews have pumped much of the water out of stations and tunnels but officials said it could still be several days or longer before full service is restored. Electronic signals, tracks, heating vents, public-address systems, fare-collection machines and lighting all need to be inspected.